The organic composition of capital in Karl Marx's economic theory is the ratio of:
The organic composition of capital is represented by constant capital relative to variable capital, \(c/v\). Constant capital is invested in means of production, while…
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The organic composition of capital in Karl Marx's economic theory is the ratio of:
Answer and explanation
Correct answer B
The organic composition of capital is represented by constant capital relative to variable capital, . Constant capital is invested in means of production, while variable capital is spent on labour power; surplus value relative to total capital instead measures the rate of profit.
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Kerala SET (LBS Centre)